Economy

Palace creates body to firm up insurance coverage of gov’t assets

PRESIDENT Rodrigo R. Duterte signed on Monday Administrative Order (AO) No. 4 creating a temporary interagency committee to ensure that government properties are “properly and adequately insured.”

President Rodrigo R. Duterte signed on Monday Administrative Order (AO) No. 4 creating a temporary interagency committee to ensure that government properties are “properly and adequately insured.” -- THE PHILIPPINE STAR_KRIZJOHN ROSALES

Under AO 4, the new body is composed of the Secretary of Finance as chairman and the Executive Secretary as co-chairman.

Members of the committee include the Department of Budget and Management (DBM), the Insurance Commission, and the Government Service and Insurance System (GSIS).

The interagency committee was also ordered to submit a terminal report to the President within one year after the body was convened. It will “cease to exist” after the report is sent to Mr. Duterte.

Nonetheless, the Department of Finance (DoF) will continue to undertake, “as necessary,” the vital activities that ensure comprehensive insurance of all key properties and “other insurable interests” of the government.

“There is a need to prescribe the necessary policies, rules and regulations to ensure that the key properties, assets and other interests of the government, especially the high-risk items, are provided with comprehensive and adequate insurance coverage,” the new AO read in part.

According to AO 4, the state has allocated P1 billion in this year’s national budget for the insurance coverage of government facilities against natural calamities. The use of the funds are subject to guidelines issued by the DBM, DoF, and GSIS.

The Commission on Audit, as noted in the AO, indicated in its reports that there are still some government agencies whose properties, assets, and facilities are not insured or “substantially underinsured.” -- Ian Nicolas P. Cigaral